Eh, same thing really. There's nothing wrong with the map.
And between Heidlheim/Zarya and Castelio is a lot of yet-unclaimed land. They're for the European-kind of countries. Could be divided further into packets.

East and west is just the direction where the sun rises and sets, respectively. Since maps wrap horizontally, where the East and West continent is irrelevant, but the direction of East and West themselves is the left and right, respectively.

tl;dr: it's called the Northeast Theater by the Castelians, but to the Thorllundt it's the Southwestern Theatre, got it?

I sort of see a problem with the Imperian border. The article said that it originated from the Ynglia Islands, which were to the left of the conquered peninsula. In the map, the islands and peninsula are split between three states, with Imperia inclusive.